The Insolvency Service has published its latest England & Wales insolvency statistics for Q3 2019 (July-September) indicating that personal insolvencies (seasonally adjusted) increased by 0.6% from Q3 2019 compared to Q2 2019, and rose by 22.7% compared to Q3 2018.
The figures showed that personal insolvencies are on the increase with 30,879 individual insolvencies in the last quarter.
Duncan Swift, president of insolvency and restructuring trade body R3, said “Today’s figures provide a worrying insight into the state of personal finances; the comparison with the same quarter last year shows an especially steep increase in personal insolvencies.”
“British consumers’ confidence is low – they’re spending less, the economic uncertainty is putting them off making big purchases, and they are pessimistic about the economy and how it will fare over the next year.”
“Although real wages have hit a recent high, they are still lower than they were before the financial crisis. Unemployment may be low, but it’s not necessarily secure for everyone. The most recent figures (June-August of this year) show that the number of people in full and part-time employment fell, while the number of self-employed people increased in the same period.”
“Consumer borrowing has increased at the slowest rate for five years, although that may be more of a reflection on the low level of consumer confidence in the UK, with people preferring to save rather than spend – and Britons are more worried about their personal finances than they have been for many years.”
Commenting on the figures Matthew Waghorn, Partner at Wilkins Kennedy said “This shows that people are continuing to carry too much personal debt but that they are trying to take control of their finances by realising they can’t carry on with the same spending patterns.”
“Consumers are seeking professional help to attempt to improve their personal debt which is the most sensible course of action and has led to a continued rise in the number of individual insolvencies.”